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Energy Efficiency, Rebound Effects and the Environmental Kuznets Curve

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  • Hanley, Nicholas
  • Turner, Karen

Abstract

Technological change is one factor used to justify the existence of an Environmental Kuznets Curve, and technological improvements have been argued to be a key factor in mitigating the impacts of economic growth on environmental quality. In this paper we use a CGE model of the Scottish economy to consider the factors influencing the impacts of one form of technological change - improvements in energy efficiency - on absolute levels of CO2 emissions, on the carbon intensity of the economy (CO2 emissions relative to real GDP), and the per capita EKC relationship. These factors include the elasticity of substitution between energy and non-energy inputs, responses in the labour market and the structure of the economy. Our results demonstrate the key role played by the general equilibrium price elasticity of demand for energy, and the relative influence of different factors on this parameter.

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Paper provided by University of Stirling, Division of Economics in its series Stirling Economics Discussion Papers with number 2010-17.

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Date of creation: Dec 2010
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Handle: RePEc:stl:stledp:2010-17

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Postal: Division of Economics, University of Stirling, Stirling, Scotland FK9 4LA
Phone: +44 (0)1786 467473
Fax: +44 (0)1786 467469
Web page: http://www.econ.stir.ac.uk/
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Keywords: computable general equilibrium models; technical progress; energy efficiency; rebound effects; Environmental Kuznets Curve;

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References

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Citations

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Cited by:
  1. Fujii, Hidemichi & Managi, Shunsuke, 2012. "Which Industry is Greener? Empirical Study for Nine Industries in OECD Countries," MPRA Paper 44229, University Library of Munich, Germany.
  2. Wang, H. & Zhou, P. & Zhou, D.Q., 2012. "An empirical study of direct rebound effect for passenger transport in urban China," Energy Economics, Elsevier, vol. 34(2), pages 452-460.
  3. Tang, Xu & Snowden, Simon & Höök, Mikael, 2013. "Analysis of energy embodied in the international trade of UK," Energy Policy, Elsevier, vol. 57(C), pages 418-428.
  4. Kaika, Dimitra & Zervas, Efthimios, 2013. "The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case," Energy Policy, Elsevier, vol. 62(C), pages 1392-1402.
  5. Koesler, Simon & Swales, Kim & Turner, Karen, 2014. "Beyond national economy-wide rebound effects: An applied general equilibrium analysis incorporating international spillover effects," ZEW Discussion Papers 14-025, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Can Tansel TUGCU, 2013. "Disaggregate Energy Consumption and Total Factor Productivity: A Cointegration and Causality Analysis for the Turkish Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 3(3), pages 307-314.
  7. Mahmood, Arshad & Marpaung, Charles O.P., 2014. "Carbon pricing and energy efficiency improvement -- why to miss the interaction for developing economies? An illustrative CGE based application to the Pakistan case," Energy Policy, Elsevier, vol. 67(C), pages 87-103.
  8. Turner, Karen, 2012. "'Rebound' effects from increased energy efficiency: a time to pause and reflect," Stirling Economics Discussion Papers 2012-15, University of Stirling, Division of Economics.
  9. Fujii, Hidemichi & Managi, Shunsuke, 2013. "Which industry is greener? An empirical study of nine industries in OECD countries," Energy Policy, Elsevier, vol. 57(C), pages 381-388.
  10. Zanin, Luca & Marra, Giampiero, 2012. "Assessing the functional relationship between CO2 emissions and economic development using an additive mixed model approach," Economic Modelling, Elsevier, vol. 29(4), pages 1328-1337.
  11. Rabindra Nepal & Tooraj Jamasb, 2013. "Energy efficiency in Market vs Planned Economies: Evidence from Transition Countries," Cambridge Working Papers in Economics 1345, Faculty of Economics, University of Cambridge.
  12. Rabindra Nepal & Tooraj Jamasb & Clement Allan Tisdell, 2013. "Market-Related Reforms and Increased Energy Efficiency in Transition Countries: Empirical Evidence," Energy Economics and Management Group Working Papers 8-2013, School of Economics, University of Queensland, Australia.

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